A unit trust allows investors with similar investment objectives to pool their money together. The total value of the unit trust (or fund) is split equally into participatory units and investors buy a share of the units of a fund. Each fund is managed by professional registered fund managers.
You should consider the term for which you would like to invest your money and how much risk you would like to take. Some funds are better for short term investors while others offer higher returns in the long term. It is always best to seek advice from a financial advisor before investing.
Units can be redeemed within certain times of any business day. An advantage of unit trusts is that they are liquid so your money is easily accessible.
Some management companies charge a once off initial fee on any investment. This fee is typically a percentage of the investment. However, no initial fees are charged on the funds offered by Ora.
Annual management fees are charged by the fund for the management of the fund.
The total expense ratio (TER) includes the annual management fee and other costs associated with management of the fund. It gives investors a clearer picture of the annual costs involved. It also includes costs paid by the fund for services rendered to it, such as custodian fees and auditor fees.
The above fees will be disclosed by all funds on the fund factsheets.
A dividend income fund is an investment offering an attractive after tax return exceeding money market yields with returns mainly in the form of tax free dividends.
A money market fund is a low risk fund that invests in short term money market instruments such as bankers' acceptances, treasury bills and commercial paper. Money market funds have a constant unit price and offer the benefit of capital stability. Investors earn a daily interest rate that fluctuates slightly and is paid monthly.
